A Legal Dilemma: Is Fred's Promise Binding?

Question: Is Fred's promise to give Maria $5,000 binding, even though he later revoked it? Answer: No, Fred's promise is not binding. This scenario falls under the legal concept of Promissory estoppel, where a promise is enforceable by law even without formal consideration. When a promisor makes a promise to a promisee who relies on that promise to their detriment, the principle of Promissory estoppel applies. If the promisee suffers significant harm due to relying on the promise, there may be grounds for legal action under Promissory estoppel.

The Principle of Promissory Estoppel

Promissory estoppel is a legal doctrine that allows a promise to be enforced even in the absence of a formal contract or consideration. It protects individuals who rely on promises made to them and subsequently suffer harm due to the promisor's failure to fulfill the promise.

Application to Fred's Promise to Maria

In the case of Fred and Maria, Fred promised to give Maria $5,000 upon her graduation. Maria relied on this promise by borrowing and spending more than $5,000 during her college years. When Fred attempted to revoke the promise before Maria's graduation, he triggered the principle of Promissory estoppel.

Substantial Performance and Contract Law

Under contract law, once substantial performance has begun, the promisor typically cannot revoke the promise. In Maria's situation, her attendance in college and fulfillment of the conditions set by Fred can be considered substantial performance. Therefore, Fred is expected to honor his promise to Maria despite his attempt to revoke it.

This principle underscores the importance of fulfilling contractual obligations and recognizing when one party has relied on a promise to their detriment. In the case of Fred and Maria, the concept of Promissory estoppel supports the argument that Fred should uphold his initial promise, given Maria's reliance and substantial performance.

← According to the video what tasks do helpers production workers commonly perform Exciting growth strategies for drip footwear →

More Posts: